Neste sets an ambitious target for carbon neutral production by 2035

Neste is committed to reaching carbon neutral production by 2035. The commitment complements Neste’s other strategic climate commitment of reducing customers’ greenhouse gas emissions by at least 20 million tons annually by 2030.

“Neste’s purpose is to create a healthier planet for our children. We do this by offering renewable and circular solutions to our customers. But what is more, we also need to commit to reducing the direct climate impact of our own activities. Therefore, we have set a concrete milestone to reach carbon neutral production by 2035. This is an enormous undertaking, one which will require new ways of thinking, innovation and plenty of cooperation,” says Peter Vanacker, President and CEO of Neste.

All aspects of greenhouse gas emissions in Neste’s production will be analyzed. The company has already identified more than 50 different measures and actions to decrease GHG emissions in production*. For example, Neste:

Continues to focus on energy efficiency to optimize the use of fuel gas, electricity, hydrogen and steam in its production. The improvements in the turnaround at Porvoo refinery in 2020 will decrease production emissions by more than 100 kt CO2eq annually;

Increases the use of renewable electricity at its production sites. As an example of this, Neste has already agreed to start using wind power in Finland;

Increases the weight of greenhouse gas emissions in the investment calculations and business case evaluation;

Explores new, less emitting production methods, for example utilizing biogas or electrolysis for hydrogen production;

Has started a project for GHG emission reductions at the Porvoo production site, focusing on carbon capture & storage; and

Identifies reliable compensation models for the remaining part which cannot be achieved by emission reductions.

“I would like to thank our committed people for their hard work in already having identified and started the implementation of concrete actions across the organization. Emission reduction is a fundamental requirement and an enormous challenge in our industry. Together with our partners, we are actively looking into new technologies and solutions to make this transformation happen,” Vanacker adds.

Neste is working on rolling out the detailed plan and timeline for implementing the initiatives with a clear strategic direction – carbon neutral production by 2035. The commitment is in line with Finland’s ambitious target for carbon neutrality by 2035 and ahead of the European Union’s respective target for 2050.

In addition to the carbon neutral production commitment, Neste will compensate the emissions from its employee business flights through the use of the company’s own sustainable aviation fuel. Neste aims to implement the target through aviation partnerships. The company has already joined KLM's corporate biofuel program in 2019. Neste has also announced its partnership with Finnair in March 2020, where one of the targets is to reduce Neste employees' own emissions on Finnair flights with the use of sustainable aviation fuel.

Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2019, Neste's revenue stood at EUR 15.8 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com

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